36188-023: Secondary Towns Integrated Urban Environmental Improvement Project | Asian Development Bank

Nepal: Secondary Towns Integrated Urban Environmental Improvement Project

Sovereign (Public) Project | 36188-023 Status: Active

The objective of the project is to develop reliable, affordable, and effective municipal infrastructure and to strengthening the capacity of municipalities and the central government for project management and operation. The project area is Biratnagar, Birgunj, Butwal municipalities and Kavre Valley (Panauti, Dhulikhel and Banepa municipalities). The project was approved in 6 July 2010 and the planned project closing date is 30 June 2016.

Project Details

Project Officer
Karkee, Mohan Bahadur South Asia Department Request for information
Country
  • Nepal
Modality
  • Loan
Sector
  • Water and other urban infrastructure and services
 
Project Name Secondary Towns Integrated Urban Environmental Improvement Project
Project Number 36188-023
Country Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2650-NEP: Secondary Towns Integrated Urban Environmental Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan 8249-NEP: Secondary Towns Integrated Urban Environmental Improvement Project
OPEC Fund for International Development US$ 17.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Transport / Urban roads and traffic management

Water and other urban infrastructure and services / Other urban services - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The objective of the project is to develop reliable, affordable, and effective municipal infrastructure and to strengthening the capacity of municipalities and the central government for project management and operation. The project area is Biratnagar, Birgunj, Butwal municipalities and Kavre Valley (Panauti, Dhulikhel and Banepa municipalities). The project was approved in 6 July 2010 and the planned project closing date is 30 June 2016.
Project Rationale and Linkage to Country/Regional Strategy

The National Urban Policy adopted by the government in 2007 gives priority to (i) achieving a balanced national urban structure6 by directing infrastructure development and investment; (ii) improving the quality of urban life by building a clean, safe, and well-developed urban environment; and (iii) setting up effective urban management by empowering capable local institutions. The 3-year interim plan (FY2008 FY2010) under the policy looks forward to government investments in urban infrastructure and other services, and to local institutions empowered and strengthened to build a clean, safe, and prosperous urban environment. While

productivity in the urban areas is higher and poverty substantially lower, infrastructure development and service delivery have fallen behind in those areas. Public investments have not kept pace with the growth of the urban population, swelled by internal conflicts and the dearth of economic and employment opportunities in the countryside.

Urban environmental conditions, already deteriorating, have worsened: inaccessible and poor-quality drinking water and sanitation facilities, uncollected or improperly dumped waste, water pollution from untreated domestic and industrial wastewater, and waterlogging. Moreover, urban services outside the Kathmandu valley are scarce. As a result, premature death, disease, and associated economic burdens disproportionately affect the poor and the vulnerable. Poor health saps economic growth by reducing labor productivity and holding back educational attainment.

Further development in the Kathmandu valley has its physical limits. New urban centers will inevitably emerge. But the urban environment in the urban centers urgently needs improvement to make up the lag in economic development in towns outside the valley and promote social and economic development in the regions of Nepal. The municipalities of Biratnagar, Birgunj, and Butwal were selected for the project on the basis of (i) economic growth potential, (ii) demand for urban services, and (iii) urban management capacity. Each town is the main urban center of an industrial corridor and of importance in external trade.

The project is in line with ADB's Nepal country partnership strategy. The project focuses on a small number of physically integrated components (drainage, sewerage and road improvement, and solid waste management in the same area); is confined to a few larger municipalities with relatively higher technical and financial capacity to implement the project and create visible impact; and provides capacity development support before project implementation.

Impact Improved quality of life and higher and more socially inclusive economic growth in key regional centers in Nepal.
Project Outcome
Description of Outcome Improved and affordable municipal services delivered effectively, efficiently, and reliably by accountable project municipalities.
Progress Toward Outcome

All nine consulting packages have been awarded. Out of 7 civil works packages; 6 have already been awarded, construction is ongoing satisfactorily in Biratnagar and Birgunj Sewer and Drainage Network, WWTP, Roads and Lanes Improvement subprojects; and in Birgunj integrated solid waste management (ISWM) Subproject.

Construction progress in Kavre Valley Integrated Water Supply Subproject is slow due to persisting social issues. In case of Butwal ISWM package, contractor was mobilized, and joint survey works were completed. However, construction works could not be initiated due to protests from locals of Charange village denying the landfill construction.

Butwal water supply subproject; construction works continued until the progress reached 27%. Further works could not be carried out due to delay in obtaining clearances from Forest authority. Request for the clearance was submitted to the Ministry of Forest and Soil Conservation. Now the approval process is in the final stage.

For Butwal auto village subproject, ADB approval for contract award was already provided. PIU is in process of awarding the contract.

It is likely that the project will achieve its outcome to provide an improved and affordable municipal services delivered effectively, efficiently, and reliably by accountable project municipalities.

Implementation Progress
Description of Project Outputs

1. Reliable, affordable and effective municipal infrastructure developed

1.1 Drainage and sewerage systems improved (Biratnagar, Birgunj)

1.2 Urban roads and lanes improved (Biratnagar, Birgunj)

1.3 Solid waste management systems improved (Birgunj, Butwal)

1.4 Water supply systems expanded (Kavre Valley, Butwal)

1.5 Other urban infrastructure facilities improved (Butwal)

1.6 Community development program undertaken, including health and hygiene education , 3R (reduce, reuse, and recycle) promotion, skills, training and investment in small-scale community facilities

2. Capacity of the municipalities and the central government strengthened for project management and operation

2.1 Municipalities strengthened in terms of financial, technical and institutional capacity

Status of Implementation Progress (Outputs, Activities, and Issues)

Construction of 62 km storm water drain including roadside drain, and 41 km sewer has been completed in Biratnagar. Similarly, 40 km storm water drain and 3 km sewer has been completed in Birgunj. The progress in WWTP is 89% in Biratnagar and 40% in Birgunj

36 km road in Biratnagar and 6 km in Birgunj has been completed. Construction ongoing.

Implementation of ISWM package is ongoing in Birgunj with 27% progress achieved. Butwal ISWM construction has been delayed due to constant protest denying access to site by the local community of Charange. The community has not posed any project related demands so far. They are not willing to allow construction of the ISWM facilities there. Elected local body in Butwal Municipality has initiated consultations with the opposing community to allow resumption of works.

Kavre water supply system is under construction with 72% progress achieved. Implementation was delayed due to social issues affecting access to 5 work sites. However, issues at 3 sites were resolved and works are in progress. Project municipalities in Kavre are putting efforts to resolve remaining issues. Butwal water supply system is also under construction with 27% progress, but affected due to delay in obtaining government clearances for tree cutting and to work in the forest area. Request for such clearances has been submitted through Ministry of Forest and Soil Conservation for Cabinet approval.

ADB has already provided approval for the contract award. PIU is in process of awarding the contract.

Under community development program, 524 private toilets in Biratnagar and 103 in Birgunj constructed. 6 public toilets with gender and disabled people friendly features have been completed in Biratnagar.

Skills development trainings provided for more than 1200 persons in the vulnerable communities. GESI activities were implemented in 167 poverty clusters of three municipalities (Butwal, Biratnagar and Birgunj).

To enhance the capacity of project implementing municipalities in terms of project management and operation, trainings such as (i) procurement; (ii) contract management; (iii) social and environmental safeguards; (iv) disbursement and account keeping; and (v) GESI have been provided to municipality and PIU staff, and contractor's personnel

Too early to assess. But the Review mission of May 2017 had noted increase in internal revenue of Birgunj and Biratnagar municipalities as compared to last year.

Financial capacities of all the project municipalities will be strengthened through increments in property tax and by other means. CFIMP in this context is being worked out at present

Geographical Location Banepa, Biratnagar, Birgunj, Butwal, Dhulikhel, Panauti
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The implementing agencies had done environmental examinations, including environmental management plans, (EMPs), for the subprojects during the feasibility study. An environmental assessment and review framework was therefore also prepared. The framework sets out the requirements for project screening and classification, subproject selection, information disclosure to and consultation with the affected people, environmental assessment, EMP development and implementation, and monitoring and reporting.

The EIA/IEE of the subprojects has been prepared as per the requirement of the Government and ADB's Environment Safeguard Policy. Project implementation is being done in line with the respective Environment Management Plan (EMP) of the Project.

The initial environmental examinations found the planned subprojects to have only small and localized adverse impact on the environment, which can be mitigated with the mitigation measures proposed in the EMPs. On the other hand, the improvements in drainage and sewerage systems, solid waste management systems and community development programs will have significant positive impact on community hygiene and overall environmental sanitation situation.

Project Implementation Units (PIUs) have updated IEE/ EIA of the sub-projects based on the final engineering design. PIUs have been complying and will comply with the EMPs of the respective subprojects while implementing the projects. Project coordination Office (PCO) has been monitoring safeguard compliance by each PIU in accordance with approved EMPs, and is reporting its implementation status in its quarterly as well as semiannual environmental safeguard monitoring report (SMR-Env) to ADB. QPR for Q1 and Q2, and SMR-Env for January to June 2017 has been submitted.

Involuntary Resettlement

Several subprojects involve land acquisition and involuntary resettlement, but the involuntary resettlement impact is not considered significant. Draft resettlement plans have been prepared for these subprojects in compliance with the government's and ADB's policy requirements. A resettlement framework has also been prepared.

The PIUs have updated/ have been updating the resettlement plan in coordination with PCO, during detailed design and on need basis during implementation of the civil works packages (subprojects), they are implementing the final resettlement plan (RP) during the Project implementation. PCO is monitoring compliance to the RPs by the PIUs and is also reporting the compliance status to ADB through quarterly progress reports and semiannual social safeguard monitoring report (SMR-Socio) to ADB. QPR for Q1 and Q2, and SMR-socio for January to June 2017 has been submitted.

Indigenous Peoples

Considering the nature and scale of these subprojects, the impact on indigenous peoples will be limited to a few involuntary resettlement and land acquisition cases. Accordingly combined RP and Indigenous People's Plan has been prepared for Kavre Valley Water Supply Sub Project. The resettlement plan includes an indigenous peoples plan, and the resettlement framework includes an indigenous peoples planning framework, with special assistance measures for indigenous people and other vulnerable groups. The Project implementation units in the respective municipalities will implement the subprojects in compliance with the prepared RPs.

As sanitation services improve, so will the health benefits for indigenous people. In addition, the gender equality and social inclusion plan contains specific actions favorable to indigenous people. The community development program has also been ongoing in the selected poverty clusters of Biratnagar, Birgunj and Butwal Municipalities to address the capacity building needs and small scale infrastructure need of marginalized and vulnerable people in the project area.

Stakeholder Communication, Participation, and Consultation
During Project Design Key stakeholders (government departments, non government organizations, development partners, etc.) joined central-level workshops held to discuss the project design during the project preparatory TA. A gender equality and social inclusion (GESI) action plan was developed to ensure the effective participation of stakeholders in the project. In the three project municipalities (Biratnagar, Birgunj, and Butwal), group discussions and workshops were organized to solicit the views of potential beneficiaries of the project, including vulnerable groups such as women, dalits, and indigenous people. Strong support for the project was confirmed at these workshops, and the design of the subprojects reflects the suggestions and comments made.
During Project Implementation

During Project Implementation concerned stakeholders at the central and the municipal level were consulted as needed regarding the Project progress, underlying issues and to develop way forward. Stakeholder's consultation is often found effective to finalize the subprojects, environment and safeguard related issues. In case of community development program (CDP) also, the project level activities are being developed and implemented in consultation with beneficiaries at site and stakeholders at the municipal level.

Consultation meetings were held, during the recent mission, at Kavre valley and Auto Village site Butwal. Issues on the ownership of auto village land, continuity of auto business after company takeover, and PPP modality were observed. PCO carried out, with ADB guidance, the due diligence on the social safeguard and resolved the issue on Auto Village. However, meaningful consultation with Charange locals could not succeed despite several attempts which has delayed the implementation of SWM subproject in Butwal. In Bhumidanda Kavre, there was a public demand for water supply and irrigation schemes (est. cost $60,000) as a compensatory measure for water diversion. Mission advised the PCO to implement, through water/irrigation users committees, the water and irrigation schemes from the CDP budget. Now the water and irrigation schemes are about to complete and works at intake area has progressed noticeably.

Business Opportunities
Consulting Services

An estimated 1,585 person-months (86 international, 1,499 national) of consulting services will be provided to (i) facilitate project management and implementation including overall monitoring and evaluation at the central level; (ii) carry out detailed design and construction supervision for individual subprojects, including monitoring for safeguards compliance; and (iii) provide institutional development support for the establishment and operationalization of the Kavre Water Supply Management Board.

An estimated 831 person-months (all national) of local NGO services will be provided to assist the implementation of the community development program. Consulting firms and local NGOs will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality: cost ratio of 80:20. Selection criteria for local NGOs will include (i) experience relevant to the project activities and objectives, (ii) experiences in the district. where the Project municipalities are located, (iii) financial integrity, and (iv) record of proven competence in community mobilization and public health sensitization programs.

A separate design and supervision consultant (DSC) services for each project municipality was procured. Extension of time was approved for the DSC services for Butwal, Biratnagar and Birgunj. Variations for the DSC services were approved for Birgunj, Biratnagar and Kavre. Butwal is in process of recruiting individual consultants.

NGO service for Biratnagar has been extended. Whereas, the NGO contract for Birgunj and Butwal were terminated. Butwal and Birgunj municipalities have initiated to continue the CDP activities through their social development sections with technical support from social development expert of DSC and PMSC.

Procurement

International competitive bidding procedures will be used for civil works contracts estimated to cost more than $1 million, and supply contracts valued at more than $500,000. National competitive bidding procedures will be used for civil works contracts equivalent to $1,000,000 or less, and supply contracts equivalent to $500,000 or less. Shopping will be used for contracts for procurement of works and equipment worth equivalent to $100,000 or less.

Out of 7 planned contract packages, 6 packages had already been awarded and construction works are in progress. Butwal auto village contract package is yet to conclude. The approval for contract award was provided by ADB on 18 January 2017. Delay observed in PIU in finalizing the contract award.

Responsible ADB Officer Karkee, Mohan Bahadur
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Physical Infrastructure and Transport
[email protected]
Singha Durbar
Kathmandu
Nepal
Timetable
Concept Clearance 12 Mar 2010
Fact Finding 15 Mar 2010 to 26 Mar 2010
MRM 19 Aug 2010
Approval 06 Jul 2010
Last Review Mission -
PDS Creation Date 19 Jul 2010
Last PDS Update 06 Sep 2017

Loan 2650-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Jul 2010 26 Oct 2010 18 Jan 2011 30 Jun 2016 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 89.33 Cumulative Contract Awards
ADB 60.00 06 Jul 2010 52.54 0.00 90%
Counterpart 29.33 Cumulative Disbursements
Cofinancing 0.00 06 Jul 2010 38.58 0.00 66%

Loan 8249-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Jun 2010 26 Nov 2010 25 Jan 2011 15 Dec 2015 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.00 Cumulative Contract Awards
ADB 0.00 18 Jun 2010 0.00 14.20 84%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 17.00 18 Jun 2010 0.00 10.95 64%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Social Monitoring Report (January-June 2017) Social Monitoring Reports Jun 2017
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Social Safeguard Monitoring Report (July-December 2016) Social Monitoring Reports Dec 2016
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Social Safeguard Monitoring Report (January-June 2016) Social Monitoring Reports Jun 2016
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jun 2016
Secondary Towns Integrated Urban Environmental Improvement Project: Social Monitoring Report (January-December 2015) Social Monitoring Reports Jan 2016
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Dec 2015
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Secondary Town Integrated Urban Environmental Improvement Project: Kavre Valley Integrated Water Supply Scheme Initial Environmental Examination Dec 2014
Secondary Towns Integrated Urban Environmental Improvement Project - Birgunj Sanitary Landfills Development: Environmental Impact Assessment Environmental Impact Assessments Nov 2014
Secondary Town Integrated Urban Environmental Improvement Project - Integrated Solid Waste Management Subproject, Butwal Municipality: Initial Environmental Examination Initial Environmental Examination Sep 2014
Secondary Towns Integrated Urban Environmental Improvement Project: Environmental Monitoring Report (August 2014) Environmental Monitoring Reports Aug 2014
STIUEIP Biratnagar - Sewer and Drainage Network Waste Water Treatment Plant Subproject & Urban Road and Lanes Improvement Subproject: Updated Resettlement Plan Resettlement Plans Jul 2014
STIUEIP - Biratnagar/Birgunj/Butwal/Kavre Valley: Social Monitoring Report (July 2014) Social Monitoring Reports Jul 2014
STIUEIP - Kavre Valley Integrated Water Supply Subproject: Updated Combined Resettlement Plan and Indigenous Peoples Plan Combined Resettlement Plan and Indigenous Peoples Plans May 2014
STIUEIP - Biratnagar/Birgunj/Butwal/Kavre Valley: Social Monitoring Report (January 2014) Social Monitoring Reports Jan 2014
Secondary Towns Integrated Urban Environmental Improvement Project: Butwal Water Supply Subproject Initial Environmental Examination Nov 2013
STIUEIP Birgunj - Sewer and Drainage Networks, Urban Road, and Lanes Improvement Subproject & Integrated Solid Waste Management Subproject: Updated Resettlement Plan Resettlement Plans Nov 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Birgunj Sewerage and Drainage Network, Waste Water Treatment Plant, and Road and Lanes Improvement Subproject Initial Environmental Examination Aug 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Biratnagar Sewerage and Drainage Network, Waste Water Treatment Plant, and Road and Lanes Improvement Subproject Initial Environmental Examination Apr 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Kavre Valley Integrated Water Supply Environmental Impact Assessments Jan 2013
Secondary Towns Integrated Urban Environmental Improvement Project - Butwal Water Supply Subproject: Due Diligence Report Safeguards Due Diligence Reports Jan 2013
Secondary Towns Integrated Urban Environmental Improvement Project - Biratnagar Municipality: Resettlement Plan and Indigenous People's Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination for Kavre Valley Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Combined Resettlement Plan and Indigenous People's Plan for Birgunj Municipality Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project Environmental Assessment and Review Framework Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Birgunj Municipality: Combined Resettlement Plan and Indigenous People's Plan Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Biratnagar Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Framework and Indigenous People's Planning Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Birgunj Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Framework and Indigenous People's Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Butwal Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Plan and Indigenous People's Plan for Biratnagar Municipality Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks May 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Plan for Kavre Valley Resettlement Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project Combined Resettlement Framework and Indigenous Peoples Planning Frameworks May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Resettlement Plan for Kavre Valley Resettlement Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Combined Resettlement Plan and Indigenous People's Plan for Birgunj Municipality Combined Resettlement Plan and Indigenous Peoples Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Resettlement Plan and Indigenous People's Plan for Biratnagar Municipality Combined Resettlement Plan and Indigenous Peoples Plans Mar 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

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Contracts Awarded

No contracts awarded for this project were found